J.P. Morgan Will Pay $700 Million in 'Whale' Fines

9/16/2013 4:17PM

Regulators are expected to hit J.P. Morgan Chase & Co. with at least $700 million in penalties as part of a settlement related to the bank’s handling of the London Whale trading loss. Colin Barr reports on the News Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... regulators are expected to hit JPMorgan Chase with at least seven hundred million in fines related to the London whale trading loss last year joining me now is Wall Street John all ... markets head of the colon bought ... he was to come modeling of great new set of some of the JPMorgan ... that's a lot of money ... yep ... thermo money and it's un this all stems from the Whale trading loss in the U last year ... aam piano was more than six billion dollars in this is the latest ... evidence that regulators are trying to make a point of saying will cure internal controls were not good ... he'd do better in terms of managing people and managing the risks ... in this of this entire story pitch because of the start of the of the whale episode by April two thousand twelve ... JPMorgan was widely thought of as the strong U S bank win the opening weekend lots of insolvent role that said ... if you know this was all I ... could and did the assumption was correct assumption was that these guys who we did the worst financial crazy yes ... by it by being smarter and more discipline than everybody else ... in the last the last year and half has cast more doubt on ... so it's it's been it's been a bad bad right for them and I'm sure that they would say ... that that's not true and that the ... kid that while they are these the middle of the states that they actually are or you play disciplined in the devil year they have integrity to point out that senior management has not been ... accused of any wrongdoing in the bank has denied ... and physical now does this flying the seven hundred million dollars penalty ... which which is nothing compared to the brilliance that she lost in the trade ... from the different fields of medicine ... will write the afflicted it one of those to sell most of their unbelief reported their working for his one with the SCC ... the SCC is under new management with Mary Jo White in she you're one of her caught up with synopsis is that ... is that people will not be able to simply say aam we don't know what happened there will pay a fine with us walk away from it she wants people to admit that they did that they could've done things the better that they did it make mistakes it for supper so within were ... we haven't had that settlement as yet that's coming in you when we were reporting that come the next few day aka and tumble what that will become confronted by bias ... and in Nymex crude all going off one of things I find interesting here is that of ... a big multi billion dollar loss because of how much messed up trading when the self correct and if you just let a ... company that made it that's right go bust ... right well that that is part of Iraq was that's one way of looking at ... me I don't think there's any risk of JPMorgan going cost of this there was a lot of money it made them look very bad ... um diamond Christina James signed and the CEO made the comment early on in this in what turned out to the crisis he said this isn't this to keep on he's been ... he keep his admitted that that was that was not a known smart thing to do with that they've they've displayed in the display to the beginning ... so aam this this is been a bad that upset them ... by the same token there's not this is not been something to put that this is not a replay of financial crisis where when you actually did have a full financial system since the collapse in what is ... what people believe that would have laughed if it hadn't been for government intervention ... with this this this was a bad trade by these guys they did not put themselves in danger of the of the JPMorgan has to ... more than one billion dollars of shareholder capital so they're stealing six billion dollar loss is bad that song like to be with them for for you and I would like governing bodies maybe for me I mean did I ... hear caliber of course ... it's always applies to